Autumn 2016 Issue
“STANLIB manages funds of $39,5 billion for over 500,000 retail and institutional customers through its diverse investment capabilities, including active and passive portfolios, multi-manager, alternatives, and property.” broad-based infrastructure. Investments include wind and solar farms generating much needed electricity. SOUTH SUDAN
GHANA
UGANDA KENYA TANZANIA
The increasing urbanisation across the continent has created demand for quality real estate developments. The STANLIB Africa Direct Property Development Fund focused primarily on investing in retail type developments in carefully chosen economically growing nodes in subSaharan Africa with a focus primarily on Nigeria and Ghana in West Africa and Kenya and Uganda in East Africa. “We are not an asset manager that pursues returns ‘at-all–costs.’ Instead, we want our investments to make a difference to our investors and in the communities where we invest,” says Mr Gobalsamy. “When you consider the benefits these investments can bring to a community, you really start to see how much of an impact an asset manager can have.”
NAMIBIA
BOTSWANA SWAZILAND
SOUTH AFRICA
LESOTHO
STANLIB’S Pan-Africa on the ground operations.
operating in this sector. Pointing to “robust long-term economic fundamentals” in Africa, McKinsey estimates $5.6 trillion in business opportunities in Africa by 2025. In East Africa, for example, the manufacturing sector has been rapidly developing. Understanding each country and market on the continent allows for the identification of good investment opportunities. LISTED AND UNLISTED STANLIB’s investment solutions in Africa include listed equity, property, and fixed income investments, and private equity, often the preferred route for flows due to the lack of depth and liquidity in African stock markets. “Private equity is an ideal vehicle to access investment opportunities across Africa,” says Mr Gobalsamy. STANLIB partnered with the founders of Agri-Vie Investment Fund, a pan-African private equity fund focused on the food and agribusiness sector, to form EXEO Capital in March 2016. A hands-on private equity manager, EXEO Capital provides equity capital and strategic development
support, and has a say in governance with a seat on the board of the companies it invests in. The focus is on medium-sized companies, where opportunities are plentiful, if you know the market well. EXEO Capital manages the Agrie-Vie Funds I and II, whose investments include stakes in Ethiopian company africaJUICE, a grower and processor of tropical fruit juice mainly for export markets in Europe and the Middle East, and the Kariki Group, a Kenyan specialist flower grower and exporter whose blooms are sold internationally and to several FMCG companies in South Africa. MEANINGFUL INVESTMENTS, MEANINGFUL RETURNS One of the hallmarks of many of STANLIB’s investments in the continent is the benefit it brings to local communities. As Africa develops the need for infrastructure is growing. The African Development Bank estimates that 645 million people on the continent don’t have access to electricity. STANLIB will soon close a $100 million infrastructure fund with a focus on sustainable CFI.co | Capital Finance International
Investments may have a big impact, but they still need to offer investors good returns. “We have a huge responsibility to our customers who rely on us to deliver meaningful investment returns,” says Mr Gobalsamy. “This is the first thing we think about, and what drives us every day. Many of our retail customers are ultimately looking to achieve financial freedom. Once they have achieved this, we know we have made a significant difference in their lives. Our institutional clients need to achieve specific investment objectives and we work with them to ensure success,” Mr Gobalsamy points out. STANLIB’s multi-specialist approach to investing enables its investment experts to develop deep insights across markets, industries and asset classes. “A ratings downgrade in Brazil, a referendum in the UK, or an election in the US may have a sudden critical impact in different ways across the globe since our world is completely interconnected,” observes Mr Gobalsamy. “STANLIB is structured in a way that allows our fund managers to make the connections between many seemingly unconnected factors, and this helps them make better decisions on behalf of our customers.” As economies in Africa grow, opportunities increase. A vibrant continent is reflected in a vibrant asset manager whose feet on the ground give its customers the opportunity of long term investment success, and African growth. i 111